Question
You just received an insurance settlement offer related to an accident you had three years ago. The offer provides you with three choices: Option A:
You just received an insurance settlement offer related to an accident you had three years ago. The offer provides you with three choices:
| Option A: $1,500 a month for 6 years |
| Option B: $1,025 a month for 10 years |
| Option C: $85,000 as a lump sum payment today |
MUST SHOW ALL WORK and CALCULATIONS
You can earn 7.5 percent on your investments and do not care if you personally receive the funds or if they are paid to your heirs should you die within the settlement period. Which option should you select and why is that option justified?
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Finance And Financial Intermediation
Authors: Harold L. Cole
1st Edition
0190941707, 978-0190941703
